For a demand curve that is linear and downward sloping, if P MR, the price elasticity of demand is:
A) elastic.
B) inelastic.
C) equal to -1.
D) none of the above is necessarily true.

Question

For a demand curve that is linear and downward sloping, if P > MR, the price elasticity of demand is:
A) elastic.
B) inelastic.
C) equal to -1.
D) none of the above is necessarily true.

Quizplus · Accepted Answer

The Answer of For a demand curve that is linear and downward sloping, if P > MR, the price elasticity of demand is:
A) elastic.
B) inelastic.
C) equal to -1.
D) none of the above is necessarily true.

For a Demand Curve That Is Linear and Downward Sloping